Judge revokes Rezko's bond, sends fundraiser to jail
A businessman who has fundraising ties to both Gov. Blagojevich and Democratic presidential contender Barack Obama won’t have the comforts of home tonight — namely a mansion in Wilmette — as a federal judge revoked his bond this afternoon and sent him to jail.
Prosecutor contended that Antoin “Tony” Rezko repeatedly lied to the court about his finances while out on bond on fraud charges.
(AP)
(Sun-Times/AP files)
“The reality is this defendant has played a shell game,” and has “misled the court” about his financial situation, Assistant U.S. Attorney Reid J. Schar said.
Rezko allegedly secretly received millions of dollars in a bank account and funneled the money through third parties to family, friends and creditors -- all without telling the court, prosecutors alleged.
Rezko got $3.5 million from a British-based Iraqi billionaire to whom he has business ties and also cashed out of a large land investment on the South Side, prosecutors alleged.
Before he was granted bond, Rezko had told the court he had no money to speak of and had to have family members post properties for his $1.5 million bond.
But prosecutors allege that Rezko funnelled money to some of those family members.
In one instance, Rezko sent $260,000 to one family member who posted two properties for Rezko’s bond -- eliminating the risk that relative faced if Rezko fled, and the properties had to be forfeited.
In another case, Rezko secretly made several mortgage payments on behalf of another relative who had posted property.
Rezko’s attorney, Joseph Duffy, tried to take the blame for any miscommunication about his client's finances, but U.S. District Court Judge Amy St. Eve wasn’t buying it.
“The fault lies with me and not Mr. Rezko,” Duffy said.
Rezko was arrested this morning at his home without incident and was taken to jail after a bond revocation hearing this afternoon.
He has pleaded not guilty to charges that he joined with another major political fundraiser, businessman and attorney Stuart Levine, to shake down money management companies wanting to invest state pension funds.
Rezko goes on trial next month, and a hearing in the case is scheduled for Tuesday afternoon.